Its slightly better to have old money because usually old money will be hard assets that can be liquidated in case the need arises. Frequently Asked Questions about old money or new money Is it better to have old money or new money? In my personal opinion, it doesnt really matter what type of money you have whether it is old money vs new money as long as you have money and your spending habits are in control. If you really think about it, most people who have new money have worked equally hard to make thier money like the founding members of old money families. One of the factors could be jealousy because they could not make the money which new money families have made in this generation and have to live on the inherited wealth. However, old money families look down at new money families and think of them new entrants to an exclusive club. Most of modern-day entreprenuers or billionaires are self-made but that doesn’t make their achievements any less significant. Though it should not matter where the money comes from, the way old money vs new money families are looked up differs.įor old money families, the passing of wealth is a custom and they ensure wealth is preserved and passed on to future generations. When it comes to social standing, old money considered better than new money. This generation of billionaires like Jeff Bezos, Elon Musk, Mark Zuckerberg, and Bill Gates do not have inherited money and they are self-made billionaires. New money is often classified as wealth created by means of buying and selling of goods and services. Since money is acquired in this generation rather than by family inheritance, the term new money is often used derogatorily to show that the person previously belonged to a lower social class. Some families who’ve old money are, the Byrd Family of Virginia, The Carter Family of Virginia, the Randolph family descendant from William Randolph, the Roosevelt family of Manhattan, the Cabots who arrived in Salem from Isle of Jersey, the Lowell family descended from Boston colonists, the Forbes family off Boston and the Griswold family of Connecticut are a few of the major old money families. It describes a social class of the rich who have to maintain their wealth over multiple generations. Old Money vs New Money ExamplesĪs described above, old money is the money which is inherited.
When it comes to old families, they know that they have to pass the money to the next generation therefore they are very practical about how they spend the money and mostly do not spend much on luxuries. They may be seen spending frivolously and showing off their wealth.
It should be noted that old money families typically spend lesser on liabilities and most of thier investments would be for profit.įamilies with new money consider the money as their own and do not bother about passing it to the next generation. You can see them living expensive homes, driving expensive cars and wearing luxury clothing. When it comes to new money families, they are more inclined towards luxury. It means they spend less and only when it’s absolutely necessary because thier understanding of money comes from thier elders and often the hardwork required to generate money is drilled into thier children growing up.
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